India Brazil

Context

Jair Bolsonaro, president of Federative Republic of Brazil, visited to India as Indian Prime Minister Narendra Modi’s chief guest for the 71st Republic Day.

Background:

• Brazilian president was on a state visit to India during January 24-27, accompanied by ministers, members of parliament, and a large business delegation.
• This is the third time a Brazilian president will be chief guest at the Republic Day parade.
• This is also Bolsonaro’s first visit to India.
• The last time a Brazilian head of state attended Republic Day was in 2004.
• As part of this visit, India-Brazil Business Forum was held in New Delhi.
• Brazil is the largest country in South America. It has a population of 210 million and a $1.8 trillion economy.

India-Brazil History

• Portugal’s Pedro Alvares was on his way to India and was blown off course, only to discover Brazil in 1500.
• He made Brazil a stop-over to finally reach Goa.
• This led to the Portuguese association between India and Brazil and exchange of varied agricultural crops and cattle in the colonial times.
• Brazil opposed India’s move in 1961 to liberate Goa from Portuguese rule.
• Ever since then the relationship between the two nations has been lukewarm.
• Trade relationship and diplomacy eventually developed between the two.
• Diplomatic relations were established between India and Brazil in 1948.
• In 1967, both countries condemned the idea of creating Non-Proliferation Treaty (NPT).

Plurilateral fora

• Today both nations are members of plurilateral fora such as BRICS, IBSA, G-20, and are members of multilateral bodies such as the United Nations.
• In 2015, representatives of the five states of BRICS, launched their New Development Bank (NDB). This was outlined in the Fortaleza declaration in 2014.
• In 2003, India, Brazil and South Africa set up IBSA, an important forum for dialogue among the three emerging countries.
• BRICS and IBSA are multilateral groupings that provide these two with a “soft balancing” strategy that resents the dominant views of the West.
• Both have campaigned for a UN Security Council permanent seat for each other.
• Brazil played a crucial role in India-Mercosur Preferential Trade Agreement (PTA) that improved India’s access to the large South American market.
• CELAC, has marked a new phase in international relations between India and Latin America.
• Ultimately both nations are considered as emerging powers with great power aspirations.

Foreign policy

• Like India, Brazil also intends to preserve autonomy in its foreign policy.
• The Brazilian foreign policy of reciprocal multilateralism is in concurrence with India's policy of strategic autonomy.

Differences between India and Brazil

• While India has a history dating back thousands of years, anciently settled and a cradle of civilization. Brazil on the other hand is a much younger country.
• The two countries share little in common ethnically or religiously.
• Other than in Goa, there is no common language: Goan Portuguese
• Even in there sports, i.e. Soccer and cricket, they are very different.
• Earlier Brazil had approached the WTO against India for extending support to Indian sugarcane growers.

Commonalities between India and Brazil

• Both countries are vigorous
• Political landscape is full of many political parties.
• The press in both countries is robust, free and quite feisty.
• States are politically influential and economically powerful, and commercial success often requires engagement at both the national and state levels.
• Both countries are rich in human resources.
• Both economies are driven by expanding middle classes clamouring for improved public services.
• Consumers in both are value-conscious, demanding durability and affordability.
• Both countries face similar challenges in their development curve.
• Both countries are multipolarism-oriented and want to give voice to the ‘global south’.

Dovetailing interests:

• Brazil — whose ties with neighbouring Argentina has deteriorated — looks to upgrade its trade partnership with India and tap its rapidly growing market.
• New Delhi on the other hand is keen to exploit possibilities in resource-rich Latin America. And given that India is energy hungry, it can tap the oil resources of the region.

Trade

• Brazil is one of the most important trading partners of India in the entire LAC (Latin America and Caribbean) region.
• Bilateral trade between India and Brazil is currently worth $8.2 billion.
• India to Brazil: Indian exports to Brazil account for $3.8 billion, which includes agro-chemicals, synthetic yarns, auto parts, nuclear reactors, boilers, pharmaceuticals and petroleum products.
• Brazil to India: Brazilian exports to India include crude oil, gold, vegetable oil, sugar, soya oil, and bulk mineral and ores.
• The actual commerce between the nations is minuscule. Total trade value between the two nations has barely grown since 2004; $1.5 billion to $8.2 billion.
• Meanwhile, Brazil’s trade with China has ballooned from $4 billion to over $100 billion in the same period.
• There is a lot of potential for trade to grow between the two nations.
• India-Brazil has now set a target of $15 billion trade by 2022.

Bilateral investment treaty

• 15 MoUs were signed during the visit of the President of Brazil.
• MoUs of cooperation were signed on investments, trade facilitation, social security, agriculture, defence and double taxation.
• For benefit of India business and tourism between two countries, visa free travel was given to Indians.
• India and Brazil signed 15 agreements to cement cooperation in areas ranging from energy and trade and investment to cyber security and information technology.
• Brazilian investments in India are mainly in automobiles, IT, mining, energy and biofuel.
• India has invested in Brazil's IT, pharmaceutical, energy, agri-business, mining and engineering.
• The Social Security Agreement (SSA) signed between Brazil and India in 2017, will allow investments in each other’s pension funds.

Defence

• Brazil and India signed a bilateral ‘Defence Cooperation Agreement’ in 2003 that calls for cooperation in defence related matters, especially in the field of Research and Development, acquisition and logistic support.
• Under the framework of the agreement, a ‘Joint Defence Committee (JDC)’ has been set-up that meets at regular interval.

Soft power

• The first classical Indian art form to come to Brazil was Bharatanatyam; Odissi, Kathak and Kuchipudi
• India’s services in wellness sector like Yoga and Ayurveda is expected to grow as Brazil has a strong community of Yoga and Ayurveda practitioners.
• Brazil has an association of Ayurveda (ABRA), a non-profit association with offices in 9 states of Brazil and members all over Brazil.
• The third International Congress on Ayurveda was held from 12 to 15 March 2018 in Rio de Janeiro.

Animal husbandry

• Animal husbandry was another area that was identified for cooperation.
• There is common genetic heritage in cattle in India and Brazil.
• Both have agreed to collaborate in assisted reproductive technology that is expected to help increase dairy production in India.
• A Centre of Excellence in Cattle Genomics will be set up in India with Brazilian assistance.

Curbing terrorism

• Both countries identified terrorism and climate change as two such subjects where the share similar opinions.

Energy

• India is one of the world’s biggest oil importers, and needs to diversify its energy needs from the Gulf.
• Iraq remains its top supplier but in recent times India has started importing more crude from the US (a 72% jump in first five months of 2019).
• The instability in Gulf, US-Iran confrontation and threats of secondary sanctions from the US may drive India further away from middle-east.
• This is where Brazil, one of world’s top 10 oil exporters, can be a big opportunity for India.

Potential between India and Brazil

• Agribusiness is the most immediate and obvious opportunity. Complementary growing seasons and sizeable internal markets make the two countries ideally suited for partnerships in agriculture.
• The year-round sugar crushing in both countries can be leveraged to become one of the largest global sugar producers.
• Promoting Brazilian ethanol exports to India will help Indian farmers implement a more efficient ethanol programme that reduces reliance on subsidies and helps improve urban India’s air quality.
• Opportunities are abound in clean energy. Each could benefit from a cross-fertilization of investment in solar power.

Conclusion

The decade long bilateral strategic partnership between India and Brazil is based on a common global vision, shared democratic values, and a commitment to foster economic growth with social inclusion for the welfare of the people of both countries.